Jetstar Hong Kong
chairwoman
Pansy Ho
has admitted the airline’s launch could be delayed by “a few months" from the target of the end of the year due to fierce opposition from Cathay Pacific and other rivals.

The airline, which is one-third owned by
Qantas Airways
, is not in control of the timing of the regulatory approvals process. It planned to be flying by now but pushed that target to the end of the year, and more recently stated it hopes to just have regulatory approval by the end of the year.

The airline will begin operations with two planes after receiving approvals. It plans to service Hong Kong locals and has no plans to fly to Australia.

Cathay, its subsidiary Dragonair, Hong Kong Airlines and Hong Kong Express Airways have filed objections on the basis Jetstar HK is not a local company due to the strong links with Qantas-owned Jetstar.

Ms Ho, who was brought on board as part of an effort to have a more local management team, told the South China Morning Post that it was “inevitable an incumbent service provider will defend its interest".

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Cathay has been frustrated in accessing more flights to Australia under bilateral arrangements, and CAPA – Centre for Aviation – this week said it was possible Hong Kong could approve the Jetstar HK application in return for Australia granting added capacity to Hong Kong.

Jetstar has a large Australian arm but it also holds stakes in regional carriers in Singapore, Japan and Vietnam.

Non-ticket revenue

A report by US-based customer research firm IdeaWorks Company found Jetstar was one of the best airlines at extracting non-ticket revenue, such as fees for food and baggage, which is part of its low-cost model.

Jetstar reported $US29.60 ($31.97) per passenger of ancillary revenue in 2012, which represented 18.6 per cent of its total revenue.

But rival Air Asia X, which has a greater proportion of long-haul flights, reported $US46.31 per passenger in ancillary revenue, comprising 18.7 per cent of total revenue. Singapore-based Tigerair received 20.8 per cent of revenue from ancillary fees averaging $US20.92 per passenger.

The study found the main Qantas brand extracts more non-ticket revenue per passenger than any other airline, due largely to its profitable frequent flyer program. The $US56.21 per passenger figure includes the sale of frequent flyer points to partners like Woolworths, and other earners such as Qantas Club lounge fees and hotel bookings through its website.

“Qantas is a premium airline and does not charge extra for food, drinks, inflight entertainment, checked baggage or other services that generally contribute to an airline’s ancillary revenue," a Qantas spokeswoman said.